Council's struggle to hit savings target

WARRINGTON Borough Council will struggle to achieve targeted savings of £22 million this year – largely because there is insufficient time for adequate consultations.
Savings of £18 million are likely to be achieved – but the remaining £4 million is “doubtful”, according to Cllr Peter Carey, the council’s executive member, corporate resources and services.
In a mid-year financial review, Cllr Carey (right) says there is little or no scope for any additional revenue spending. In fact, the position is far worse than was expected.
Considerable effort will be required to achieved a balanced budget by the end of the financial year.
While a “balanced” revenue out-turn of £150 million was reported for 2010-11, this was only achieved by using an extra £2 million from the Medium Term Financial Plan (MTFP) reserve.
As a result, the reserve carried forward was reduced from £6 million to £4 million, which reduces the scope for dealing with issues arising in the current and future financial years.
“This is lower than I would like – but we have to get on with it,” said Cllr Carey.
While progress had been made on achieving the targeted £22 million it was clear not all the savings could be achieved, mostly because of the need to allow for necessary and unavoidable consultation.
Savings of £3 million on a restructure of the environment and regeneration department would be achieved – but only £2 million during the current year
Corporate savings on staff terms and conditions – put at £2 million – were unlikely to be achieved. In spite of regular meetings with union representatives, it had not been possible to reach agreement.
It was uncertain that savings of £2 million on contracts for adult social care could be achieved.
There is a potential revenue shortfall of £4 million which would use up the whole of the remaining MTFP reserve – “clearly not an acceptable situation.”
Cllr Carey added: “Looking forward we clearly need to address the worsening financial situation to ensure that the budget remains in balance, that targeting savings are re-assessed and achieved and that the MTFP reserve is restored to a more prudent level.”
Dealing with the capital programme, Cllr Carey said to date only £9.3 million has been spent of an original programme of £98 million for the current year. There was therefore likely to be a significant slippage into 2012-13 – and as a result additional schemes were being included in the current year.
These include a £500,000 upgrade of Walton Hall and Estate, additional street cleaning equipment costing £250,000, upgrading community and youth facilities costing £250,000, enhancements to Bank Park costing £250,000 and town centre improvements costing £100,000.